Voice over Internet Protocol works by allowing people to use the internet to communicate rather than ordinary telephones.  VoIP is also referred to as IP Telephony (Internet Protocol Telephony).

Some manufacturers refer to VoIP technology as Convergence. Convergence is the way of describing the integration and development of VoIP together with ordinary telephone lines and therefore potentially getting the ‘best of both worlds’, i.e. when two different types of technology merge. Currently, the vast majority of VoIP installations use a mixture of the internet and analogue telephone lines. Over a period of time, this looks likely to change to VoIP only.

Undoubtedly, the most well known form of VoIP is Skype which allows subscribers to call each other free of charge over the internet. The downside with Skype is that it cannot be used with other VoIP systems.

VoIP is best known or thought of as Skype and has many competitor vendors. The big guns include: Mitel, ShoreTel, Toshiba Business Communications, Aastra, Cisco, BT, Avaya, Gradwell and LG-Ericsson who provide a strong SMB VoIP telephony portfolio. Plantronics supplies innovative and superb headset technology whilst an alternative to VoIP is Hosted VoIP and for SMEs these vendors represent good value for money and lower cost of entry. Hosted VoIP vendors include: InClarity, Frontier Voice & Data, Voicenet Solutions, Telappliant and iHub who offer hosted IP Telephony and Unified Communications. Traditional mobile network operators such as O2 have fantastic business VoIP services as the market joins up its communications.

The Future of VoIP

Many companies use VoIP to reduce their phone and network costs whilst increasing efficiency, competitiveness and productivity. This is achieved through reduced call and maintenance costs, but also because when individuals are using their PC to make calls, other people can see whether they are available. This is unlike traditional phones where it is impossible to know if someone is available to speak or not.

As access to the internet becomes more widespread and prices are reduced for broadband access and internet call technology; VoIP will increasingly become a viable option. According to Ovum, a technology analysis organisation, some 20% of companies in the UK have already adopted VoIP.

Another area of growth is the onset of mobile VoIP. With mobile VoIP you can take your handset anywhere in the world and enjoy the same benefits as using VoIP from your office.

There are a number of mobile phone handsets and Personal Digital Assistants (PDA’s) that allow you to use either your usual mobile operator or connect to a wireless network and communicate via VoIP. It is without doubt here to stay.

Organisations can gain a number of benefits by implementing VoIP but these will depend on the requirements, the situation and the type of organisation.

• If an organisation is moving to a new office without a telephone system already installed then it may make sense to implement VoIP immediately rather than investing in a traditional Private Automated Branch Exchange (PABX). It is possible to then save money on cabling because both data and voice calls can use the same infrastructure, rather than having two sets of cables, one for voice calls and one for sending emails.
• If organisations have a small office without a PABX but with only one or two incoming lines, and already have an internet connection, it would be wise to approach your Internet Service Provider in order to see what they offer. At this stage you may find that there is very little price difference between using VoIP and a traditional phone system on the basis that the major telecommunications companies, or carriers as they are often known, are reducing their prices and becoming extremely competitive.
• Having multiple offices or working remotely is where the benefits of VoIP can be really achieved. Normally each office will need a PABX system, which will no longer be required as all calls can be routed or directed across one internet connection. This means that internal calls across the company can be free, helping you make considerable cost savings.
• VoIP can have an impact on improving work within an organisation and improve efficiency. This is because VoIP treats voice as if it were any other kind of data such as email, documents or presentations. This means that users can, for example, participate in online meetings via high-quality video whilst working on the same material, going through the same presentation or revising the same document, simultaneously. An example of this is people working in different parts of the world, collaborating on a particular project by using VoIP as a low cost method of communicating ideas regularly without worrying about the cost of calls.
• Using VoIP can potentially lower the costs of managing your overall network because you only have one system to support and manage.

To find out more about VoIP from Cisco, simply click here